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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001
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or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 33-11907
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DIVERSIFIED HISTORIC INVESTORS IV
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(Exact name of registrant as specified in its charter)
Pennsylvania 23-2440837
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1521 Locust Street, Philadelphia, PA 19102
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 557-9800
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N/A
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(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets - March 31, 2001 (unaudited)
and December 31, 2000
Consolidated Statements of Operations - Three Months
Ended March 31, 2001 and 2000 (unaudited)
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 2001 and 2000 (unaudited)
Notes to Consolidated Financial Statements (unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(1) Liquidity
As of March 31, 2001, Registrant had cash of
$334,409. The Registrant expects that those funds plus the cash
generated from operations at each property will be sufficient to
fund the operating expenses of the properties. The Registrant is
not aware of any additional sources of liquidity.
As of March 31, 2001, Registrant had restricted cash
of $15,889 consisting primarily of funds held as security
deposits and escrows for taxes and insurance. As a consequence
of the restrictions as to use, Registrant does not deem these
funds to be a source of liquidity.
(2) Capital Resources
Any capital expenditures needed are generally
replacement items and are funded out of cash from operations.
The Registrant is not aware of any factors which would cause
historical capital expenditure levels not to be indicative of
capital requirements in the future and accordingly, does not
believe that it will have to commit material resources to capital
investment for the foreseeable future.
(3) Results of Operations
During the first quarter of 2001, Registrant
incurred a loss of $28,646 ($3.42 per limited partnership unit)
compared to a loss of $33,854 ($4.04 per limited partnership
unit) for the same period in 2000.
Rental income decreased $474 from $48,716 in the
first quarter of 2000 to $48,242 in the same period in 2001. The
decrease in rental income is due to a decrease in average
occupancy at Locke Mill Plaza (86% to 71%), partially offset by
an increase in average occupancy at the Brass Works (96% to
100%).
Interest income increased $409 from $2,098 in the
first quarter of 2000 to $2,507 in the same period in 2001. The
increase is due to an increase in the amount of invested cash.
Rental operation expenses decreased by $5,943 from
$43,763 in the first quarter of 2000 to $37,820 in the same
period in 2001. The decrease is due to a decrease in accounting
expense incurred during the first quarter, partially offset by an
increase in maintenance expense at Locke Mill Plaza due to an
increase in general maintenance repairs.
Losses incurred during the first quarter of 2001 at
the Registrant's two properties amounted to approximately $8,000,
compared to losses of approximately $2,000 for the same period in
2000.
In the first quarter of 2001, Registrant recognized
a net income of $1,500 at the Brass Works, including $12,000 of
depreciation expense, compared to a loss of $3,000 including
$12,000 of depreciation expense in the first quarter of 2000.
The decrease in loss from the first quarter of 2000 to the same
period in 2001 is due to an increase in rental income due to an
increase in occupancy (96% to 100%), and an increase in average
rental rates.
In the first quarter of 2001, Registrant incurred a
net loss of $9,000 at Locke Mill Plaza, including $7,000 of
depreciation expense, compared to a net income of $600 including
$7,000 of depreciation expense during the first quarter of 2000.
The decrease in net income from the first quarter of 2000 to the
same period in 2001 is due to a decrease in rental income, and an
increase in maintenance expense. The decrease in rental income is
due to a decrease in average occupancy (86% to 71%) and the
increase in maintenance expense is due to an increase in general
maintenance repairs.
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
CONSOLIDATED BALANCE SHEETS
Assets
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March 31, 2001 December 31, 2000
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(Unaudited)
Rental properties, at cost:
Land $ 74,324 $ 74,324
Buildings and improvements 2,246,555 2,246,555
Furniture and fixtures 29,814 29,814
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2,350,693 2,350,693
Less - Accumulated
depreciation (1,157,935) (1,135,171)
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1,192,758 1,215,522
Cash and cash equivalents 334,409 330,149
Restricted cash 15,889 22,787
Other assets 21,995 22,056
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Total $1,565,051 $1,590,514
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Liabilities and Partners' Equity
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Liabilities:
Accounts payable-trade $ 48,519 $ 44,677
Other liabilities (182) 1,378
Tenant security deposits 13,165 12,265
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Total liabilities 61,502 58,320
Partners' equity 1,503,549 1,532,194
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Total $1,565,051 $1,590,514
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
Three Months ended
March 31,
2001 2000
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Revenues:
Rental income $48,242 $48,716
Interest income 2,507 2,098
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Total revenues 50,749 50,814
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Costs and expenses:
Rental operations 37,820 43,762
General and administrative 18,811 18,000
Depreciation and amortization 22,764 22,906
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Total costs and expenses 79,395 84,668
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Net loss ($28,646) ($33,854)
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Net loss per limited partnership
unit ($ 3.42) ($ 4.04)
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Unaudited)
Three months ended
March 31,
2001 2000
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Cash flows from operating activities:
Net loss ($ 28,646) ($ 33,854)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 22,764 22,906
Changes in assets and liabilities:
Decrease in restricted cash 6,899 5,803
Decrease in other assets 60 2,849
Increase (decrease) in accounts
payable - trade 3,842 (4,374)
(Decrease) in other liabilities (1,559) (104)
Increase (decrease) in tenant
security deposits 900 (360)
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Net cash used in operating activities 4,260 (7,134)
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Decrease in cash and cash equivalents 4,260 (7,134)
Cash and cash equivalents at
beginning of period 330,149 325,890
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Cash and cash equivalents at end of
period $ 334,409 $ 318,756
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The accompanying notes are an integral part of these financial statements.
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The unaudited consolidated financial statements of Diversified
Historic Investors IV (the "Registrant") and related notes have
been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such
rules and regulations. The accompanying consolidated financial
statements and related notes should be read in conjunction with
the audited financial statements in Form 10-K of the Registrant,
and notes thereto, for the year ended December 31, 2000.
The information furnished reflects, in the opinion of management,
all adjustments, consisting of normal recurring accruals,
necessary for a fair presentation of the results of the interim
periods presented.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
To the best of its knowledge, Registrant is not a
party to, nor is any of its property the subject of, any pending
material legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the quarter covered
by this report to a vote of security holders.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Number Document
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3 Registrant's Amended and
Restated Certificate of Limited
Partnership and Agreement of
Limited Partnership, previously
filed as part of Amendment No.
2 of Registrant's Registration
Statement on Form S-11, are
incorporated herein by
reference.
21 Subsidiaries of the Registrant
are listed in Item 2.
Properties on Form 10-K,
previously filed and
incorporated herein by
reference.
(b) Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter
ended March 31, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: September 23, 2002 DIVERSIFIED HISTORIC INVESTORS IV
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By: Dover Historic Advisors III,
General Partner
By: EPK, Inc., General Partner
By: /s/ SPENCER WERTHEIMER
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President and Treasurer